The rates continue within the uptrend, which can be observed for the fifth consecutive month. The large-scale weakening of the dollar, which became possible due to negative economic forecasts, as well as the development of the pandemic, forced investors to look for other assets to invest in. The Australian dollar, largely dependent on the economic situation in China, became a more attractive asset, which allowed it to recover to the level of January 2020.
This week the trend continued. The Australian dollar received support from the publication of data on the trade balance in China. Despite the reduction in imports, China's economy is recovering much faster than expected, which gives a good perspective for Australia.
The US dollar is recovering at the end of the week. It was positively impacted by yesterday's report on the number of unemployment benefits which showed decrease. It could also receive support today from the publication of unemployment data but overall, the macroeconomic reports for the USA remain disappointing. Most experts believe that the weakening of the dollar will continue in the near future, especially in the absence of an effective vaccine for the treatment of the novel coronavirus and the continuation of record rates of disease growth.
In the current situation, we believe that the deals to BUY will be the most effective in the near future. Most technical analysis tools also tend to the deals on the trend, although a price correction in the near future is not excluded.
